Economics · NBFC Regulatory Framework
Examine the following statements regarding the regulatory framework for Infrastructure Finance Companies (NBFC-IFC) and Infrastructure Debt Funds (NBFC-IDF) in India: Statement 1: An NBFC-IFC is required to have at least 75 percent of its total assets deployed in infrastructure loans and must maintain a minimum Net Owned Fund of 300 crore rupees. Statement 2: Infrastructure Debt Funds (NBFC-IDF) are specialized entities that can be sponsored only by Banks or NBFC-IFCs, and they must maintain a CRAR of 15 percent at all times. Statement 3: NBFC-IDFs are primarily intended to provide 'Take-out Financing' for infrastructure projects that have completed at least one year of satisfactory commercial operation (Post-COD). Statement 4: NBFC-IDFs are allowed to raise funds through the issuance of Rupee or Dollar denominated bonds with a minimum maturity of 5 years. Which of the combinations below is correct?
- 1Statement 1, Statement 3, and Statement 4 are correct; Statement 2 is incorrect.
- 2Statement 1, Statement 2, and Statement 3 are correct; Statement 4 is incorrect.✓
- 3Statement 2, Statement 3, and Statement 4 are correct; Statement 1 is incorrect.
- 4All statements are correct.
Correct answer
Statement 1, Statement 2, and Statement 3 are correct; Statement 4 is incorrect.
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